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GE will commit $156 million in capital, or about 51% ownership stake in the project, which will see the 200 megawatt (MW) Prairie Rose project use GE made turbines, according to a statement released by GE.
Enel Green Power will commit a 49% ownership share, approximately $149 million in capital, and oversee the farm as project manager.
Meanwhile, both Enel Green Power and GE raised about $190 million in tax equity from a syndicate headed by J.P. Morgan. When the project is completed, the tax equity will be invested and cut both GE and Enel Green Power’s stake in the wind project. Other companies in the syndicate include Wells Fargo Wind Holdings LLC and Metropolitan Life Insurance Company.
The new project will help boost the local economy, creating 300 construction jobs, while creating close to 12 permanent jobs, and bringing approximately $850,000 annually in local tax revenue.
On the environmental side, the wind farm will take 650,000 tonnes of greenhouse gas emissions annually out of the atmosphere, while providing enough power to support 75,000 homes.
“This transaction showcases GE’s ability to provide both world-class technology and flexible financing structures for our customers and advances our long-term partnership with Enel Green Power, an established renewable energy leader,” Kevin Walsh, Managing Director of Power and Renewable Energy at GE Energy Financial Services, said in a statement.
The cost of the project is around $305 million and will be located near Harwick, Minnesota. Mortensen Construction will oversee the constructing of the wind farm. The project is set for completion by the end of this year. The new wind farm will supply all of its power under a 20-year agreement to Xcel Energy subsidiary Northern States Power Company.
Enel Green Power North American can further its ownership stake in the wind farm, with an option to buy an extra 26% from GE’s share later this year and in 2013.
A University of Winnipeg graduate who received a three year B.A. with a combined major in Economics and Rhetoric, Writing & Communications. Currently attempting to be a freelance social media coordinator. My eventual goal is to be a clean tech policy analyst down the road while I sharpen my skills as a renewable energy writer. Currently working on a book on clean tech and how to relate it to a broader audience. You can follow me on Twitter @adamjohnstonwpg or at www.adammjohnston.wordpress.com